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Permian Basin Royalty Trust Message Board

  • jpust47573 jpust47573 Dec 31, 2013 5:50 AM Flag

    Why so low now?

    Any thoughts as to why PBT is getting lower? Does any one see much lower price in this? Any thoughts would be appreciated. Thank You, may you all have a great new year!!!

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    • joetclu Dec 31, 2013 3:51 PM Flag

      I believe the recent drop in prices are a lot because of the large amount of capital expenditures expended, and will continue to be expended at least for the balance of 2013. According to the 10 K dated 10-30-13, ConocoPhillips planed to spend close to 94 million (gross) in 2013. I understand they are doing directional drilling and fracking on these on these old wells to get more production from them. Thru the 3rd quarter of 2013 they had spent only 29.5 million of the 93.9 million they had budgeted. That leaves lot yet to be expended in 2013. As you know, our royalty income is net of these expenses. My friends in the oil &gas business tell me this newer technology is being very profitable. So hopefully, when all these workovers are complete, we will see much more production, and higher distributions and most likely higher prices for the shares. Also as you also know, the information we get is way late in coming, so we may have to wait til mid 2014 to see how all this plays out. There may be I am not seeing or understanding so anyone help me out if can do so. Thanks

    • EOY (end of year) selling part of it. Rising interest ratespart of it.

6.66+0.04(+0.60%)May 23 4:02 PMEDT